LONDON and NEW YORK, June 9,2014 /PRNewswire/ --Man Group plc ("Man Group") has agreed to acquire Pine Grove Asset Management LLC ("Pine Grove"), a US-based fund of hedge fund manager specializing in the management of credit-focused hedge fund portfolios with approximately $1.0 billion of assets under management. The transaction is subject to customary closing requirements and is expected to close in the third quarter of 2014. Financial terms of the transaction were not disclosed.
Pine Grove is a credit-focused fund of hedge fund manager, founded in 1994, with offices in Summit, NJ and New York City. The firm is employee-owned, with senior investment professionals having on average 18 years of direct investment management experience. Since inception, the firm's hedge fund selections and portfolio management have delivered attractive risk-adjusted returns across market cycles. Approximately two thirds of Pine Grove's assets are from institutional investors, primarily US-based, with the remaining third from US high net worth individuals and family offices.
Pine Grove will enhance Man Group's presence in the US and add to Man Group's fund of hedge funds business, FRM. Pine Grove will also reinforce FRM's efforts to offer clients a wide variety of investment opportunities including SEC-registered US 40 Act funds and complementary fund of hedge fund products.
After closing, Pine Grove's investment philosophy, strategy and approach will remain unchanged, and the firm will benefit from Man Group's robust institutional infrastructure. Matthew Stadtmauer, currently President of Pine Grove, will become President of FRM. Tom Williams, currently Pine Grove's Chief Investment Officer will continue to be responsible for all investment decisions relating to Pine Grove's portfolios and will join FRM's Investment Executive committee.
Commenting on the transaction, Luke Ellis, President of Man Group, said, "FRM's longstanding strategy has been to help investors use hedge funds to achieve their investment goals. Pine Grove has a long and accomplished track record of outperformance and is an excellent addition to the FRM business."
Michelle McCloskey, New York-based Senior Managing Director of FRM, said, "We look forward to working closely with our new colleagues with the aim to deliver positive risk-adjusted performance for our clients. The opportunity to expand FRM's footprint in the US is extremely exciting."
Matthew Stadtmauer, President of Pine Grove, stated, "Over the course of 20 years Pine Grove has built a well-received client-focused business model over multiple market cycles. We are now at the point in our evolution where the additional infrastructure, resources and support available at FRM will provide significant benefits to existing and future clients. We are delighted to be taking this highly progressive step for our business."
Tom Williams, Pine Grove's Chief Investment Officer, said "We are particularly excited about becoming part of FRM, which will provide us with world-class infrastructure, technology and resources, while allowing Pine Grove to maintain our entrepreneurial investment approach. This will enhance our business and add significant value for clients as we strive to create the optimal environment for our investment professionals to deliver performance."
Enquiries:
Fiona Smart
Head of Investor Relations
+44 20 7144 2030
fiona.smart@man.com
Rosanna Konarzewski
Global Head of Communications
+44 20 7144 2078
media@man.com
UK
RLM Finsbury
Ryan O'Keeffe/Chris Ryall
mangroup@RLMFinsbury.com
+44 20 7251 3801
US
Prosek Partners
Brian Schaffer/Caroline Harris-Gibson
bschaffer@prosek.com/cgibson@prosek.com
+1 212 279 3115
Notes to editors:
About Man Group plc
Man Group is a world-leading global alternative investment management business with $55.0 billion in AUM as of 31 March 2014. The firm offers a wide range of liquid alternative investment styles, combined with powerful product structuring, distribution and client service capabilities. Man Group has three performance-driven investment engines: AHL/MSS, GLG and FRM. AHL/MSS is Man Group's quantitative investments business with $11.3 billion of AUM; it applies a systematic investment management approach utilizing extensive research and development. Man Group's GLG division has $32.7 billion of AUM and is a discretionary fund manager with absolute return and long-only investment strategies. FRM has $11.0 billion of AUM and offers hedge fund and alpha strategy solutions, including managed accounts, fund of hedge funds, client advisory solutions, and outsourced research, consulting and infrastructure services.
Founded in 1783, Man Group plc is listed on the London Stock Exchange, is a member of the FTSE 250 Index and is a signatory to the United Nations Principles for Responsible Investment (PRI). Man Group also supports many awards, charities and initiatives around the world, including sponsorship of the Man Booker literary prizes. Further information can be found at www.man.com.
About FRM
Founded in 1991 and joining Man Group in 2012, FRM is one of the largest independent European based alternatives specialists, with $11.0 billion of assets under management. With a predominantly institutional client base, FRM is responsible for open-architecture hedge fund and alpha strategy solutions, including fund of hedge funds, client advisory solutions, outsourced research, and consulting. It runs the largest and most extensive buy-side managed account platform in the world, with 49 research and investment staff in offices located in London, New York, Tokyo, Guernsey and Switzerland.
FRM has an investment driven culture with a focus on maximising risk-adjusted returns through a dynamic investment process combining bottom-up global research and top-down macro views. Dedicated to working closely with clients to offer insights, knowledge transfer and customer solutions, FRM is focused on delivering investment solutions which optimise resources to meet investor's wide reaching needs.
About Pine Grove
Founded in 1994, Pine Grove Asset Management LLC, is an SEC Registered Investment Adviser, focusing on providing sophisticated investors with access to alternative investment strategies through diversified fund of hedge fund portfolios. An independent, employee-owned firm, Pine Grove has $1.0 billion of assets under management, specialising in asset allocation and hedge fund manager selection, focusing predominantly on credit related strategies. This provides its global clientele with a diversification tool for both traditional and alternative investment portfolios.
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SOURCE Man Group
